The current crisis has put a spotlight on workout frameworks, especially out-of-court or hybrid procedures, which can provide flexible and cost-effective solutions to address firms’ liquidity and solvency issues while reducing the burden on courts. Some countries implemented reforms to their corporate workout frameworks in the wake of the COVID-19 pandemic, although many EMDEs remain in need of reforms to resolve the challenges for businesses at risk.
This toolkit prepared by the World Bank is a comprehensive resource and spells out possible ways of facilitating fast, flexible, and cost-effective solutions to address firms’ financial problems without overburdening the court systems. It also provides sample and model documents for use by debtors and creditors in workouts. Read more in this related blog.
A Toolkit for Corporate Workouts is a revised and updated version of the World Bank Group Insolvency & Debt Resolution team’s A Toolkit for Out-of-Court Workouts (2016).
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